Jim Cramer thought Apple reported a fantastic quarter on Tuesday. Yet, the analysts on the conference call made investors feel like Apple could face real trouble.
Cramer's first bone to pick was with Morgan Stanley's Katy Huberty, who gave Apple an overweight rating, and asked CFO Luca Maestri for help to figure out the company's guidance "given all the major projects are running below target."
While Apple gave conservative guidance, Cramer pointed out that the iPhone 7 has tremendous demand. Huberty also asked about the doubled R&D budget in the past three years, while sales growth is less than that.
Cook responded by saying that the company has spent a lot of money building a services business that generated $6.3 billion in revenue and has a 24 percent accelerating growth rate.